{"id":206555,"date":"2020-05-01T07:56:46","date_gmt":"2020-05-01T07:56:46","guid":{"rendered":"http:\/\/www.thetruthseeker.co.uk\/?p=206555"},"modified":"2020-05-04T07:48:26","modified_gmt":"2020-05-04T07:48:26","slug":"white-house-economic-advisor-says-unemployment-rate-will-near-great-depression","status":"publish","type":"post","link":"https:\/\/www.thetruthseeker.co.uk\/?p=206555","title":{"rendered":"White House economic advisor says unemployment rate will near Great Depression"},"content":{"rendered":"<h1 style=\"text-align: center;\"><strong>Eric Rosenbaum \u2013 CNBC April 26, 2020<\/strong><\/h1>\n<ul>\n<li><span style=\"color: #ccffff;\">Speaking to reporters on the White House lawn on Sunday morning, Hassett said the unemployment rate could hit 16% and \u201cthe next couple of months are going to be terrible\u201d for economic data.<\/span><\/li>\n<li><span style=\"color: #ccffff;\">Hassett described the coronavirus shutdown as \u201cthe biggest negative shock that our economy I think has ever seen.\u201d<\/span><\/li>\n<li><span style=\"color: #ccffff;\">\u201cYou\u2019re going to see numbers as bad as\u00a0we\u2019ve ever seen,\u201d Hassett said<\/span><\/li>\n<\/ul>\n<div id=\"attachment_193919\" style=\"width: 550px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.thetruthseeker.co.uk\/wp-content\/uploads\/2019\/08\/Unemplyed-men-at-a-soup-kitchen-in-New-York-during-the-Great-Depresseion.jpeg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-193919\" class=\"wp-image-193919\" src=\"https:\/\/www.thetruthseeker.co.uk\/wp-content\/uploads\/2019\/08\/Unemplyed-men-at-a-soup-kitchen-in-New-York-during-the-Great-Depresseion-768x461.jpeg\" alt=\"\" width=\"540\" height=\"324\" srcset=\"https:\/\/www.thetruthseeker.co.uk\/wp-content\/uploads\/2019\/08\/Unemplyed-men-at-a-soup-kitchen-in-New-York-during-the-Great-Depresseion-768x461.jpeg 768w, https:\/\/www.thetruthseeker.co.uk\/wp-content\/uploads\/2019\/08\/Unemplyed-men-at-a-soup-kitchen-in-New-York-during-the-Great-Depresseion-300x180.jpeg 300w, https:\/\/www.thetruthseeker.co.uk\/wp-content\/uploads\/2019\/08\/Unemplyed-men-at-a-soup-kitchen-in-New-York-during-the-Great-Depresseion-1024x614.jpeg 1024w, https:\/\/www.thetruthseeker.co.uk\/wp-content\/uploads\/2019\/08\/Unemplyed-men-at-a-soup-kitchen-in-New-York-during-the-Great-Depresseion.jpeg 1240w\" sizes=\"(max-width: 540px) 100vw, 540px\" \/><\/a><p id=\"caption-attachment-193919\" class=\"wp-caption-text\">Unemployed men at a soup kitchen in New York during the Great Depresseion. Click to enlarge<\/p><\/div>\n<p><span style=\"color: #ccffff;\">White House economic advisor Kevin Hassett warned on Sunday that unemployment could hit levels not seen since the Great Depression as the economy contracts dramatically while businesses in most parts of the nation remain shuttered due to the coronavirus pandemic.\u00a0<\/span><\/p>\n<p><span style=\"color: #ccffff;\">Speaking to reporters on the White House lawn on Sunday morning, Hassett said the unemployment rate could hit 16% and \u201cthe next couple of months are going to be terrible\u201d for economic data.<\/span><\/p>\n<p><span style=\"color: #ccffff;\">\u201cWe see an unemployment rate that approaches rates we saw during the Great Depression,\u201d Hassett told ABC\u2019s \u201cThis Week.\u201d \u201cDuring the Great Recession we lost 8.7 million jobs in the whole thing. Now we\u2019re losing that many every 10 days, so the lift for economic policy makers is an extraordinary one.\u201d<\/span><\/p>\n<p><span style=\"color: #ccffff;\">Hassett described the coronavirus shutdown as \u201cthe biggest negative shock that our economy I think has ever seen.\u201d<\/span><\/p>\n<p><span style=\"color: #ccffff;\">President Donald Trump said earlier this week that in a phone call with Apple CEO Tim Cook, the tech leader said he <span style=\"text-decoration: underline;\"><strong><a style=\"color: #ccffff; text-decoration: underline;\" href=\"https:\/\/www.cnbc.com\/2020\/04\/24\/trump-says-he-talked-to-apple-ceo-tim-cook-about-coronavirus.html\">expected a V-shaped recovery<\/a><\/strong><\/span>, meaning a quick rebound after a sharp fall. Hassett said on ABC that a V-shaped recovery will depend on the next response from the federal government.<\/span><\/p>\n<p><span style=\"color: #ccffff;\">\u201cA lot will depend on what happens next,\u201d Hassett said about the chances of seeing a V-shaped economic rebound rather than a longer U-shaped return to economic growth. \u201cWhat we\u2019ve done with the previous legislation is built a bridge hopefully to the other side of the disease, but then we have to make sure we have what it takes to prosper. \u201d<\/span><\/p>\n<p><span style=\"color: #ccffff;\">Hassett told ABC, \u201cOver the next three to four weeks, everyone will pull together to come up with a plan to give us the best chance possible for a V-shaped recovery.\u201d<\/span><\/p>\n<p><span style=\"color: #ccffff;\">Speaking to Chris Wallace on FOX News Sunday, Treasury Secretary Steve Mnuchin said he expects the economy to bounce back by the summer. \u201cI think as we begin to reopen the economy in May and June you\u2019re going to see the economy really bounce back in July, August, September. [&#8230;] You\u2019re seeing trillions of dollars that\u2019s making its way into the economy and I think this is going to have a significant impact,\u201d Mnuchin said.<\/span><\/p>\n<p><span style=\"color: #ccffff;\">Wallace questioned the Treasury Secretary\u2019s confidence, citing numbers including the nonpartisan Congressional Budget Office projecting GDP will shrink by 5.6% this year and unemployment end 2020 close to 12%. The Fox News anchor also noted that Mnuchin\u2019s former employer, Goldman Sachs, says the global hit will be four times worse than the 2008 Great Recession.<\/span><\/p>\n<p><span style=\"color: #ccffff;\">\u201cThis is a scenario where we\u2019ve closed the economy and we\u2019re going to open the economy,\u201d Mnuchin said. \u201cSo all these models are based upon health assumptions, how quickly we reopen, so we\u2019ll see. My own opinion is, again, we have an unprecedented amount of liquidity in the system. We\u2019re very sympathetic to all the people that are out of work. But there is enhanced unemployment, there\u2019s the PPP, there\u2019s direct deposits. [\u2026 ] And as businesses begin to open you\u2019re going to see the demand side of the economy rebound.\u201d<\/span><\/p>\n<p><span style=\"color: #ccffff;\">The insured unemployment rate, which compares those current receiving benefits to the size of the labor force, rose to 11% this past week, a weekly jump of 2.8%. That <a style=\"color: #ccffff;\" href=\"https:\/\/www.cnbc.com\/2020\/04\/23\/weekly-jobless-claims.html\"><span style=\"text-decoration: underline;\"><strong>translates to \u201ca barely believable\u201d 23%<\/strong><\/span><\/a> when the Labor Department releases its unemployment rate calculation in two weeks, according to Paul Ashworth, chief U.S. economist at Capital Economics. The previous high for the U.S. was 24.9% during the Great Depression.<\/span><\/p>\n<p><span style=\"color: #ccffff;\">\u201cYou\u2019re going to see numbers as bad as\u00a0we\u2019ve ever seen,\u201d Hassett said. \u201cGDP growth in second quarter is going to be negative. Wall Street estimates are negative 20%, 30%. We\u2019ve done something unprecedented, stopped everything, output [has] gone to zero.\u201d<\/span><\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/2020\/04\/26\/coronavirus-hassett-says-unemployment-will-approach-great-depression.html\">Source \u2026<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cYou\u2019re going to see numbers as bad as we\u2019ve ever seen,\u201d says economics advisor to the White House Kevin Hassett <\/p>\n","protected":false},"author":39262,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[105,66],"tags":[],"class_list":["post-206555","post","type-post","status-publish","format-standard","hentry","category-coronavirus","category-Economics"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/206555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/users\/39262"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=206555"}],"version-history":[{"count":3,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/206555\/revisions"}],"predecessor-version":[{"id":206569,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/206555\/revisions\/206569"}],"wp:attachment":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=206555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=206555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=206555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}